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Private provision of public goods: a general equilibrium analysis

Author

Listed:
  • Debasis Mondal

    (Indian Institute of Technology Delhi)

  • Manash Ranjan Gupta

    (Indian Statistical Institute)

Abstract

We develop a general equilibrium model of private provision of public good where capital owners contribute but others do not. It is shown that the aggregate level of provision varies positively with the number of non-contributors but may not vary positively with the number of contributors. An increase in the number of contributors raises the national income but it may lower their welfare level. Capital accumulation does not affect the public good provision but raises welfare.

Suggested Citation

  • Debasis Mondal & Manash Ranjan Gupta, 2022. "Private provision of public goods: a general equilibrium analysis," Indian Economic Review, Springer, vol. 57(2), pages 285-300, December.
    • Handle: RePEc:spr:inecre:v:57:y:2022:i:2:d:10.1007_s41775-022-00152-x
    DOI: 10.1007/s41775-022-00152-x
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    References listed on IDEAS

    as
    1. Debasis Mondal, 2013. "Public Good Provision Under Monopolistic Competition," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 15(3), pages 378-396, June.
    2. Bergstrom, Theodore & Blume, Lawrence & Varian, Hal, 1986. "On the private provision of public goods," Journal of Public Economics, Elsevier, vol. 29(1), pages 25-49, February.
    3. Debasis Mondal, 2015. "Private provision of public good and immiserizing growth," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 45(1), pages 29-49, June.
    4. Itaya, Jun-ichi & de Meza, David & Myles, Gareth D., 1997. "In praise of inequality: public good provision and income distribution," Economics Letters, Elsevier, vol. 57(3), pages 289-296, December.
    5. Paul Pecorino, 2009. "Monopolistic Competition, Growth and Public Good Provision," Economic Journal, Royal Economic Society, vol. 119(534), pages 298-307, January.
    6. Uler, Neslihan, 2009. "Public goods provision and redistributive taxation," Journal of Public Economics, Elsevier, vol. 93(3-4), pages 440-453, April.
    7. Tamai, Toshiki, 2010. "Public goods provision, redistributive taxation, and wealth accumulation," Journal of Public Economics, Elsevier, vol. 94(11-12), pages 1067-1072, December.
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    More about this item

    Keywords

    Public good; Private provision; Nash equilibrium; Welfare;
    All these keywords.

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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